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HomeMy WebLinkAboutDesert Rose/Res No. 495 - Sale of Property at Rockrose Court APN 634-241-018-5PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: PUBLIC HEARING FORTHE SALE OF THE PROPERTY LOCATED AT 43-915 ROCKROSE COURT (APN 634-241-018-5), PALM DESERT SUBMITTED BY: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR DATE: AUGUST 26, 2004 CONTENTS: AGENCY RESOLUTION NO. 495 PURCHASE AND SALE AGREEMENT Recommendation: 1. That the Redevelopment Agency hold a public hearing on the proposed sale of the property located at 43-915 Rockrose Court, Palm Desert, to a person or family of low or moderate income. 2. That the Redevelopment Agency adopt Resolution No. 495 approving the sale of 43-915 Rockrose Court (APN 634-241-018-5) to a person or family of low or moderate income pursuant to the attached Purchase and Sale Agreement. DISCUSSION: Health and Safety Code Section 33433(a) and (b) generally provide that before any property of the Agency acquired, in whole or in part, directly or indirectly, with tax increment moneys is sold for development pursuant to the redevelopment plan, the sale must first be approved by the City Council by resolution after a public hearing and the resolution must contain certain findings. Health and Safety Code Section 33433(c) provides that the requirements of subdivisions (a) and (b) will not apply to the sale of a "small housing project" if the City Council adopts a resolution that authorizes the Agency to sell small housing projects pursuant to Section 33433(c). Pursuant to its Resolution No. 03-34, adopted on April 10, 2003, the City Council authorized the Agency to sell small housing projects pursuant to Section 33433(c). On June 17, 2004, the Agency purchased the single-family residence located at 43-915 Rockrose Court (the "Property") from Sandra L. McCormick. The Agency proposes to sell the property to another qualified person or family of low or moderate income (the "Buyer"). G:\RDA\Pally Leon\Wpdocs\TLaRocca\Staff ReportsTalm Desert 33433(c) 43-915 Rockrose Ct.wpd RESOLUTION NO. 495 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A RESIDENTIAL PURCHASE AND SALE AGREEMENT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433(c) THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Palm Desert Redevelopment Agency (the "Agency") owns a residential structure located at 43-915 Rockrose Court in the City of Palm Desert, California (the "Property"). The Agency proposes to sell the Property to a person or family of low or moderate income pursuant to the purchase and sale agreement (the "Agreement") presented to the Agency at this meeting and now on file in the offices of the Agency Secretary and City Clerk of the City of Palm Desert. Section 2. Following notice duly given, the Agency has held a full and fair public hearing on the sale by the Agency of the Property pursuant to Health and Safety Code Section 33431. The Agency has made available to the public through the office of the City Clerk a copy of the Agreement prior to the public hearing. Section 3. The Agency hereby finds and determines that the Property qualifies as a "small housing project" as that term is defined in Health and Safety Code 33013. Section 4. Pursuant to its Resolution No. 03-34, the City Council authorized the Agency to sell or lease a "small housing project" as that term is defined in Health and Safety Code Section 33013, pursuant to Health and Safety Code Section 33433(c). Section 5. The Agency hereby approves the Agreement and the Executive Director is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver the Agreement in substantially the form on file with the Agency Secretary and the City Clerk and presented at this meeting, with such additions thereto or changes or insertions therein as may be approved by the Executive Director (such approval to be conclusively evidenced by such execution and delivery). P6402\0001\726347.1 -1- RESOLUTION NO.495 Section 6. The officers of the Agency are hereby authorized and directed, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper in order to effectuate the purposes of this Resolution and the transaction contemplated hereby; and any such actions previously taken by such officers are hereby ratified, confirmed and approved. PASSED, APPROVED and ADOPTED this 26'h day of August. 2004, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: Robert A. Spiegel, Chairman ATTEST: Rachelle D. Klassen, Secretary P6402\0001\726347.1 -2- CALIFORNIA ,At C A L I F O R N I A RESIDENTIAL PURCHASE AGREEMENT � a SS O C I AT ION AND JOINT ESCROW INSTRUCTIONS _� OF R E A L T O R S 0 For Use With Single Family Residential Property — Attached or Detached (C.A.R. Form RPA-CA, Revised 10102) Date Auaust 6. 2004 at Palm Desert California. 1. OFFER: A. THIS IS AN OFFER FROM A Qualified buver of very low, low or moderate income ("Buyer"). B. THE REAL PROPERTY TO BE ACQUIRED is described as 43-915 Rock Rose, Palm Desert , CA 92211 , Assessor's Parcel No. situated in Palm Desert , County of Riverside California, ("Property"). C. THE PURCHASE PRICE offered is one Hundred Thousand Five Hundred Dollars$ 100,500.00 D. CLOSE OF ESCROW shall occur on 90 days or Sooner (date) (or ❑ Days After Acceptance). 2. FINANCE TERMS: Obtaining the loans below is a contingency of this Agreement unless: (i) either 2K or 2L is checked below; or (ii) otherwise agreed in writing. Buyer shall act diligently and in good faith to obtain the designated loans. Obtaining deposit, down payment and closing costs is not a contingency. Buyer represents that funds will be good when deposited with Escrow Holder. A. INITIAL DEPOSIT: Buyer has given a deposit in the amount of .......................................... $ to the agent submitting the offer (or to ❑ ), by personal check (or ❑ ), made payable to , which shall be held uncashed until Acceptance and then deposited within 3 business days after Acceptance (or F 1 ), with Escrow Holder, (or❑ into Brokers trust account). B. INCREASED DEPOSIT: Buyer shall deposit with Escrow Holder an increased deposit in the amount of ..... $ within Days After Acceptance, or ❑ C. FIRST LOAN IN THE AMOUNT OF ...................................................... $ TBD (1) NEW First Deed of Trust in favor of lender, encumbering the Property, securing a note payable at maximum interest of % fixed rate, or % initial adjustable rate with a maximum interest rate of %, balance due in years, amortized over years. Buyer shall pay loan fees/points not to exceed (These terms apply whether the designated loan is conventional, FHA or VA.) (2) ❑ FHA ❑ VA: (The following terms only apply to the FHA or VA loan that is checked.) Seller shall pay % discount points. Seller shall pay other fees not allowed to be paid by Buyer, ❑ not to exceed $ . Seller shall pay the cost of lender required Repairs (including those for wood destroying pest) not otherwise provided for in this Agreement, ❑ not to exceed $ . (Actual loan amount may increase if mortgage insurance premiums, funding fees or closing costs are financed.) D. ADDITIONAL FINANCING TERMS: ❑ Seller financing, (C.A.R. Form SFA); ❑ secondary financing, ........... $ TJ3D (C.A.R. Form PAA, paragraph 4A); ❑ assumed financing (C.A.R. Form PAA, paragraph 4B) Palm Desert Redevelopment aaencv "Silent" second E. BALANCE OF PURCHASE PRICE (not including costs of obtaining loans and other closing costs) in the amount of .. $ 100, 500. 00 to be deposited with Escrow Holder within sufficient time to close escrow. F. PURCHASE PRICE (TOTAL): ................................................................... $ 100, 500. 00 G. LOAN APPLICATIONS: Within 7 (or ❑ ) Days After Acceptance, Buyer shall provide Seller a letter from lender or mortgage loan broker stating that, based on a review of Buyer's written application and credit report, Buyer is prequalifted or preapproved for the NEW loan specked in 2C above. H. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer (or Buyer's lender or loan broker pursuant to 2G) shall, within 7 (or ❑ ) Days After Acceptance, provide Seller written verification of Buyer's down payment and closing costs. 1. LOAN CONTINGENCY REMOVAL: (i) Within 17 (or ❑ ) Days After Acceptance, Buyer shall, as specified in paragraph 14, remove the loan contingency or cancel this Agreement; OR (ii) (if checked) ❑ the loan contingency shall remain in effect until the designated loans are funded. J. APPRAISAL CONTINGENCY AND REMOVAL: This Agreement is (OR, if checked, ❑ is NOT) contingent upon the Property appraising at no less than the specified purchase price. If there is a loan contingency, at the time the loan contingency is removed (or, if checked, ❑ within 17 (or ❑ ) Days After Acceptance), Buyer shall, as specified in paragraph 14B(3), remove the appraisal contingency or cancel this Agreement. If there is no loan contingency, Buyer shall, as specified in paragraph 14B(3), remove the appraisal contingency within 17 (or ) Days After Acceptance. K. ❑ NO LOAN CONTINGENCY (If checked): Obtaining any loan in paragraphs 2C, 2D or elsewhere in this Agreement is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property, Seller may be entitled to Buyer's deposit or other legal remedies. L. ❑ ALL CASH OFFER (If checked): No loan is needed to purchase the Property. Buyer shall, within 7 (or ❑ ) Days After Acceptance, provide Seiler written verification of sufficient funds to close this transaction. 3. CLOSING AND OCCUPANCY: A. Buyer intends (or ❑ does not intend) to occupy the Property as Buyer's primary residence. B. Seller -occupied or vacant property: Occupancy shall be delivered to Buyer at 5: 00 ❑ AM ® PM, ® on the date of Close Of Escrow; ❑ on ; or ❑ no later than Days After Close Of Escrow. (C.A.R. Form PAA, paragraph 2.) If transfer of title and occupancy do not occur at the same time, Buyer and Seller are advised to: (i) enter into a written occupancy agreement; and (ii) consult with their insurance and legal advisors. Buyer's Initials ( ) ( ) The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this form, or any portion thereof, by photocopy machine or any other Seller's Initials ( ) ( ) means, include facsimile or computerized formats. Copyright ® 1991-2002, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS RESERVED. I Reviewed by Date E0m NOUSIN0 OPPORTUNITY RPA-CA REVISED 10102 (PAGE 1 OF 8) CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 1 OF 81 Agent: John Osborne Phone: (760)921-2121 Fax: (760)922-4387 Prepared using WINForms® software Broker: Century 21 Osborne Realty 41 Orquidia Court, Palm Desert CA 92260 Property Address: 43-915 Rock Rose, Palm Desert . CA 92211 Date:,Auwst 6. 2004 C. Tenant -occupied property: (i) Property shall be vacant at least 5 (or ❑ ) Days Prior to Close Of Escrow, unless otherwise agreed in writing. Note to Seller: If you are unable to deliver Property vacant in accordance with rent control and other applicable Law, you may be in breach of this Agreement. OR (ii) (if checked) ❑ Tenant to remain in possession. The attached addendum is incorporated into this Agreement (C.A.R. Form PAA, paragraph 3.); OR (iii) (if checked) ❑ This Agreement is contingent upon Buyer and Seller entering into a written agreement regarding occupancy of the Property within the time specked in paragraph 1413(1). If no written agreement is reached within this time, either Buyer or Seller may cancel this Agreement in writing. D. At Close Of Escrow, Seller assigns to Buyer any assignable warranty rights for items included in the sale and shall provide any available Copies of such warranties. Brokers cannot and will not determine the assignability of any warranties. E. At Close Of Escrow, unless otherwise agreed in writing, Seller shall provide keys and/or means to operate all locks, mailboxes, security systems, alarms and garage door openers. If Property is a condominium or located in a common interest subdivision, Buyer may be required to pay a deposit to the Homeowners' Association ("HOA") to obtain keys to accessible HOA facilities. 4. ALLOCATION OF COSTS (If checked): Unless otherwise specified here, this paragraph only determines who is to pay for the report, inspection, test or service mentioned. If not specified here or elsewhere in this Agreement, the determination of who is to pay for any work recommended or identified by any such report, inspection, test or service shall be by the method specked in paragraph 14B(2). A. WOOD DESTROYING PEST INSPECTION: (1) []Buyer []Seller shall pay for an inspection and report for wood destroying pests and organisms ("Report") which shall be prepared by , a registered structural pest control company. The Report shall cover the accessible areas of -the main building and attached structures and, if checked: ❑ detached garages and carports, ❑ detached decks, ❑ the following other structures or areas . The Report shall not include roof coverings. If Property is a condominium or located in a common interest subdivision, the Report shall include only the separate interest and any exclusive -use areas being transferred and shall not include common areas, unless otherwise agreed. Water tests of shower pans on upper level units may not be performed without consent of the owners of property below the shower. OR (2) ® (If checked) The attached addendum (C.A.R. Form WPA) regarding wood destroying pest inspection and allocation of cost is incorporated into this Agreement. B. OTHER INSPECTIONS AND REPORTS: (1) ❑ Buyer ❑ Seller shall pay to have septic or private sewage disposal systems inspected (2) ❑ Buyer ❑ Seller shall pay to have domestic wells tested for water potability and productivity (3) ❑ Buyer ® Seller shall pay for a natural hazard zone disclosure report prepared by First American Title (4) ❑ Buyer ❑ Seller shall pay for the following inspection or report (6) ❑ Buyer ❑ Seller shall pay for the following inspection or report C. GOVERNMENT REQUIREMENTS AND RETROFIT: (1) ❑ Buyer ® Seller shall pay for smoke detector installation and/or water heater bracing, if required by Law. Prior to Close Of Escrow, Seller shall provide Buyer a written statement of compliance in accordance with state and local Law, unless exempt. (2) ❑ Buyer ❑ Seller shall pay the cost of compliance with any other minimum mandatory government retrofit standards, inspections and reports if required as a condition of closing escrow under any Law. D. ESCROW AND TITLE: (1) ® Buyer ® Seller shall pay escrow fee Normal as Allowed Escrow Holder shall be Foresite Escrow (2) ❑ Buyer ® Seller shall pay for owner's title insurance policy specked in paragraph 12 Owner's title policy to be issued by First American Title (Buyer shall pay for any title insurance policy insuring Buyer's lender, unless otherwise agreed in writing.) E. OTHER COSTS: (1) ❑ Buyer ® Seller shall pay County transfer tax or transfer fee (2) ❑ Buyer ❑ Seller shall pay City transfer tax or transfer fee (3) ❑ Buyer ® Seller shall pay HOA transfer fees (4) ❑ Buyer ® Seller shall pay HOA document preparation fees (6) ❑ Buyer ® Seller shall pay the cost, not to exceed $ 350. 00 of a one-year home warranty plan, issued by A Reliable Companv with the following optional coverage: (6) ❑ Buyer ❑ Seller shall pay for (7) ❑ Buyer ❑ Seller shall pay for 5. STATUTORY DISCLOSURES (INCLUDING LEAD -BASED PAINT HAZARD DISCLOSURES) AND CANCELLATION RIGHTS: A. (1) Seller shall, within the time specified in paragraph 14A, deliver to Buyer, if required by Law: (i) Federal Lead -Based Paint Disclosures and pamphlet ("Lead Disclosures"); and (ii) disclosures or notices required by sections 1102 et. seq. and 1103 et. seq. of the California Civil Code ("Statutory Disclosures"). Statutory Disclosures include, but are not limited to, a Real Estate Transfer Disclosure Statement ("TDS"), Natural Hazard Disclosure Statement ("NHD"), notice or actual knowledge of release of illegal controlled substance, notice of special tax and/or assessments (or, if allowed, substantially equivalent notice regarding the Mello -Roos Community Facilities Act and Improvement Bond Act of 1915) and, if Seller has actual knowledge, an industrial use and military ordnance location disclosure (C.A.R. Form SSD). (2) Buyer shall, within the time specked in paragraph 1413(1), return Signed Copies of the Statutory and Lead Disclosures to Seller. (3) In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer of which Buyer is otherwise unaware, Seller shall promptly provide a subsequent or amended disclosure or notice, in writing, covering those items. However, a subsequent or amended disclosure shall not be required for conditions and material inaccuracies disclosed in reports ordered and paid for by Buyer. Buyers Initials ( ) ( ) Seller's Initials ( ) ( ) Copyright© 1991-2002, CALIFORNIA ASSOCIATION OF REALTORS®, INC. E UAL RPA-CA REVISED 10/02 (PAGE 2 OF 8) I Reviewed by Date I OPPORTUNITY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 2 OF 8) 16641484.ZFX Property Address: 43-915 Rock Rose. Palm Desert . CA 92211 Date: Auaus t 6. 2004 (4) If any disclosure or notice specified in 5A(1), or subsequent or amended disclosure or notice is delivered to Buyer after the offer is Signed, Buyer shall have the right to cancel this Agreement within 3 Days After delivery in person, or 5 Days After delivery by deposit in the mail, by giving written notice of cancellation to Seller or Seller's agent. (Lead Disclosures sent by mail must be sent certified mail or better.) (5) Note to Buyer and Seller: Waiver of Statutory and Lead Disclosures is prohibited by Law. B. NATURAL AND ENVIRONMENTAL HAZARDS: Within the time specified in paragraph 14, Seller shall, if required by Law: (i) deliver to Buyer earthquake guides (and questionnaire) and environmental hazards booklet; (11) even if exempt from the obligation to provide a NHD, disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone; Seismic Hazard Zone; and (III) disclose any other zone as required by Law and provide any other information required for those zones. C. DATA BASE DISCLOSURE: NOTICE: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code. The data base is updated on a quarterly basis and a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900" telephone service. Callers must have specific information about individuals they are checking. Information regarding neighborhoods is not available through the "900" telephone service. 6. CONDOMINIUMIPLANNED UNIT DEVELOPMENT DISCLOSURES: A. SELLER HAS: 7 (or ❑ ) Days After Acceptance to disclose to Buyer whether the Property is a condominium, or is located in a planned unit development or other common interest subdivision (C.A.R. Form SSD). B. If the Property is a condominium or is located in a planned unit development or other common interest subdivision, Seller has 3 (or ❑ ) Days After Acceptance to request from the HOA (C.A.R. Form HOA): (1) Copies of any documents required by Law; (if) disclosure of any pending or anticipated claim or litigation by or against the HOA; (III) a statement containing the location and number of designated parking and storage spaces; (iv) Copies of the most recent 12 months of HOA minutes for regular and special meetings; and (v) the names and contact information of all HOAs governing the Property (collectively, "Cl Disclosures"). Seller shall itemize and deliver to Buyer all CI Disclosures received from the HOA and any Cl Disclosures in Seller's possession. Buyer's approval of CI Disclosures is a contingency of this Agreement as specified in paragraph 14. 7. CONDITIONS AFFECTING PROPERTY: A. Unless otherwise agreed: (i) the Property is sold (a) in its PRESENT physical condition as of the date of Acceptance and (b) subject to Buyer's Investigation rights; (if) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance; and (III) all debris and personal property not included in the sale shall be removed by Close Of Escrow. B. SELLER SHALL, within the time specified in paragraph 14A, DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property, including known insurance claims within the past five years, AND MAKE OTHER DISCLOSURES REQUIRED BY LAW (C.A.R. Form SSD). C. NOTE TO BUYER: You are strongly advised to conduct investigations of the entire Property in order to determine its present condition since Seller may not be aware of all defects affecting the Property or other factors that you consider important. Property improvements may not be built according to code, in compliance with current Law, or have had permits issued. D. NOTE TO SELLER: Buyer has the right to inspect the Property and, as specified in paragraph 14B, based upon information discovered in those inspections: (i) cancel this Agreement; or (if) request that you make Repairs or take other action. 8. ITEMS INCLUDED AND EXCLUDED: A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the MLS, flyers or marketing materials are not included in the purchase price or excluded from the sale unless specified in 8B or C. B. ITEMS INCLUDED IN SALE: (1) All EXISTING fixtures and fittings that are attached to the Property; (2) Existing electrical, mechanical, lighting, plumbing and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar systems, built-in appliances, window and door screens, awnings, shutters, window coverings, attached floor coverings, television antennas, satellite dishes, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, mailbox, in -ground landscaping, trees/shrubs, water softeners, water purifiers, security systems/alarms; and (3) The following items: (4) Seller represents that all items included in the purchase price, unless otherwise specified, are owned by Seller. (5) All items included shall be transferred free of liens and without Seller warranty. C. ITEMS EXCLUDED FROM SALE: 9. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY: A. Buyer's acceptance of the condition of, and any other matter affecting the Property, is a contingency of this Agreement as specified in this paragraph and paragraph 14B. within the time specified in paragraph 148(1), Buyer shall have the right, at Buyer's expense unless otherwise agreed, to conduct inspections, investigations, tests, surveys and other studies ("Buyer Investigations"), including, but not limited to, the right to: (i) inspect for lead -based paint and other lead -based paint hazards; (if) inspect for wood destroying pests and organisms; (lit) review the registered sex offender database; (iv) confirm the insurability of Buyer and the Property; and (v) satisfy Buyer as to any matter specified in the attached Buyer's Inspection Advisory (C.A.R. Form BIA). Without Seller's prior written consent, Buyer shall neither make nor cause to be made: (i) invasive or destructive Buyer Investigations; or (if) inspections by any governmental building or zoning inspector or government employee, unless required by Law. B. Buyer shall complete Buyer Investigations and, as specified in paragraph 14B, remove the contingency or cancel this Agreement. Buyer shall give Seller, at no cost, complete Copies of all Buyer Investigation reports obtained by Buyer. Seller shall make the Property available for all Buyer Investigations. Seller shall have water, gas, electricity and all operable pilot lights on for Buyer's Investigations and through the date possession is made available to Buyer. Buyer's Initials ( ) ( ) Seller's Initials ( ) ( ) Copyright © 1991-2002, CALIFORNIA ASSOCIATION OF REALTORS@, INC. RPA-CA REVISED 10/02 (PAGE 3 OF 8) I Reviewed by Date I OWAI HOUSING 1 OPPDPNNITY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 3 OF 8) T6641484.ZFX Property Address: 43-915 Rock Rose. Palm Desert . CA 92211 Date:August 6. 2004 10. REPAIRS: Repairs shall be completed prior to final verification of condition unless otherwise agreed in writing. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, including governmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials of quality and appearance comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall: (i) obtain receipts for Repairs performed by others; (ii) prepare a written statement indicating the Repairs performed by Seller and the date of such Repairs; and (Ili) provide Copies of receipts and statements to Buyer prior to final verification of condition. 11. BUYER INDEMNITY AND SELLER PROTECTION FOR ENTRY UPON PROPERTY: Buyer shall: (1) keep the Property free and clear of liens; (ii) Repair all damage arising from Buyer Investigations; and (Ili) indemnify and hold Seller harmless from all resulting liability, claims, demands, damages and costs. Buyer shall cant', or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a "Notice of Non -responsibility" (C.A.R. Form NNR) for Buyer Investigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shall survive the termination of this Agreement. 12. TITLE AND VESTING: A. Within the time specified in paragraph 14, Buyer shall be provided a current preliminary (title) report, which is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer's review of the preliminary report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 14B. B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not, as of the date of Acceptance except: (i) monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing. C. Within the time specified in paragraph 14A, Seller has a duty to disclose to Buyer all matters known to Seller affecting title, whether of record or not. D. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's supplemental escrow instructions. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL. E. Buyer shall receive a CLTA/ALTA Homeowner's Policy of Title Insurance. A title company, at Buyer's request, can provide information about the availability, desirability, coverage, and cost of various title insurance coverages and endorsements. If Buyer desires title coverage other than that required by this paragraph, Buyer shall instruct Escrow Holder in writing and pay any increase in cost. 13. SALE OF BUYER'S PROPERTY: A. This Agreement is NOT contingent upon the sale of any property owned by Buyer. OR B. ❑ (If checked): The attached addendum (C.A.R. Form COP) regarding the contingency for the sale of property owned by Buyer is incorporated into this Agreement. 14. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph must be in writing (C.A.R. Form CR). A. SELLER HAS: 7 (or ❑ ) Days After Acceptance to deliver to Buyer all reports, disclosures and information for which Seller is responsible under paragraphs 4, 5A and B, 6A, 7B and 12. B. (1) BUYER HAS: 17 (or ❑ ) Days After Acceptance, unless otherwise agreed in writing, to: (1) complete all Buyer Investigations; approve all disclosures, reports and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property (including lead -based paint and lead -based paint hazards as well as other information specified in paragraph 5 and insurability of Buyer and the Property); and (ii) return to Seller Signed Copies of Statutory and Lead Disclosures delivered by Seller in accordance with paragraph 5A. (2) Within the time specified in 146(1), Buyer may request that Seller make repairs or take any other action regarding the Property (C.A.R. Form RR). Seller has no obligation to agree to or respond to Buyer's requests. (3) By the end of the time specked in 1413(1) (or 21 for loan contingency or 2J for appraisal contingency), Buyer shall, in writing, remove the applicable contingency (C.A.R. Form CR) or cancel this Agreement. However, if the following inspections, reports or disclosures are not made within the time specified in 14A, then Buyer has 5 (or ❑ ) Days after receipt of any such items, or the time specified in 14B(1), whichever is later, to remove the applicable contingency or cancel this Agreement in writing: (i) government -mandated inspections or reports required as a condition of closing; or (ii) Common Interest Disclosures pursuant to paragraph 6B. C. CONTINUATION OF CONTINGENCY OR CONTRACTUAL OBLIGATION; SELLER RIGHT TO CANCEL: (1) Seller right to Cancel; Buyer Contingencies: Seller, after first giving Buyer a Notice to Buyer to Perform (as specified below), may cancel this Agreement in writing and authorize return of Buyer's deposit if, by the time specified in this Agreement, Buyer does not remove in writing the applicable contingency or cancel this Agreement. Once all contingencies have been removed, failure of either Buyer or Seller to close escrow on time may be a breach of this Agreement. (2) Continuation of Contingency: Even after the expiration of the time specked in 146(1), Buyer retains the right to make requests to Seller, remove in writing the applicable contingency or cancel this Agreement until Seller cancels pursuant to 14C(1). Once Seller receives Buyer's written removal of all contingencies, Seller may not cancel this Agreement pursuant to 14C(1). (3) Seller right to Cancel; Buyer Contract Obligations: Seller, after first giving Buyer a Notice to Buyer to Perform (as specked below), may cancel this Agreement in writing and authorize return of Buyer's deposit for any of the following reasons: (i) if Buyer fails to deposit funds as required by 2A or 26; (ii) if the funds deposited pursuant to 2A or 2B are not good when deposited; (Ili) if Buyer fails to provide a letter as required by 2G; (iv) if Buyer fails to provide verification as required by 2H or 2L; (v) if Seller reasonably disapproves of the verification provided by 2H or 2L; (vi) if Buyer fails to return Statutory and Lead Disclosures as required by paragraph 5A(2); or (vii) if Buyer fails to sign or initial a separate liquidated damage form for an increased deposit as required by paragraph 16. Seller is not required to give Buyer a Notice to Perform regarding Close of Escrow. (4) Notice To Buyer To Perform: The Notice to Buyer to Perform (C.A.R. Form NBP) shall: (i) be in writing; (ii) be signed by Seller; and (Ili) give Buyer at least 24 (or ❑ ) hours (or until the time specified in the applicable paragraph, whichever occurs last) to take the applicable action. A Notice to Buyer to Perform may not be given any earlier than 2 Days Prior to the expiration of the applicable time for Buyer to remove a contingency or cancel this Agreement or meet a 14C(3) obligation. Buyer's Initials ( ) ( ) Seller's Initials ( Copyright ©1991-2002, CALIFORNIA ASSOCIATION OF REALTORSS, INC. RPA-CA REVISED 10102 (PAGE 4 OF 8) Reviewed by Date OPPORiOU INC CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 4 OF 8) T6641484.ZFX PropertyAddress:V-915 Rock Roge. Pa1m Desert . cA 92211 Date:Auaust 6. 2004 D. EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes, in writing, any contingency or cancellation rights, unless otherwise specified in a separate written agreement between Buyer and Seller, Buyer shall conclusively be deemed to have: (1) completed all Buyer Investigations, and review of reports and other applicable information and disclosures pertaining to that contingency or cancellation right; (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and expense for Repairs or corrections pertaining to that contingency or cancellation right, or for inability to obtain financing. E. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, Buyer and Seller agree to Sign mutual instructions to cancel the sale and escrow and release deposits, less fees and costs, to the party entitled to the funds. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. Release of funds will require mutual Signed release instructions from Buyer and Seller, judicial decision or arbitration award. A party may be subject to a civil penalty of up to $1,000 for refusal to sign such instructions if no good faith dispute exists as to who is entitled to the deposited funds (Civil Code §1057.3). 15. FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final inspection of the Property within 5 (or ) Days Prior to Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph 7A; (ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement. 16. LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid. If the Property is a dwelling with no more than four units, one of which Buyer intends to occupy, then the amount retained shall be no more than 3% of the purchase price. Any excess shall be returned to Buyer. Release of funds will require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. BUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION FOR ANY INCREASED DEPOSIT. (C.A.R. FORM RID) Buyer's Initials / Seller's Initials / 17. DISPUTE RESOLUTION: A. MEDIATION: Buyer and Seller agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action. Paragraphs 17B(2) and (3) below apply whether or not the Arbitration provision is initialed. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party commences an action without first attempting to resolve the matter through mediation, or refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. B. ARBITRATION OF DISPUTES: (1) Buyer and Seller agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration, including and subject to paragraphs 17B(2) and (3) below. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential real estate Law experience, unless the parties mutually agree to a different arbitrator, who shall render an award in accordance with substantive California Law. The parties shall have the right to discovery in accordance with California Code of Civil Procedure §1283.05. In all other respects, the arbitration shall be conducted in accordance with Title 9 of Part III of the California Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction. Interpretation of this agreement to arbitrate shall be governed by the Federal Arbitration Act. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from mediation and arbitration: (i) a judicial or non -judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in California Civil Code §2985; (ii) an unlawful detainer action; (iii) the filing or enforcement of a mechanic's lien; and (iv) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver of the mediation and arbitration provisions. (3) BROKERS: Buyer and Seller agree to mediate and arbitrate disputes or claims involving either or both Brokers, consistent with 17 A and B, provided either or both Brokers shall have agreed to such mediation or arbitration prior to, or within a reasonable time after, the dispute or claim is presented to Brokers. Any election by either or both Brokers to participate in mediation or arbitration shall not result In Brokers being deemed parties to the Agreement. "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION." I Buyer's Initials / Seller's Initials Buyer's Initials ( ) ( ) ) ( ) Copyright © 1991-2002, CALIFORNIA ASSOCIATION OF REALTORSO, INC. Seller's Initials ( RPA-CA REVISED 10102 (PAGE 5 OF 8) Reviewed by Date OPPORTUNITY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 5 OF 8) T6641484.ZFX Property Address: 43-915 Rock Rose. Palm Desert . CA 92211 Date:Auaust 6. 2004 18. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless otherwise agreed in writing, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, rents, HOA regular, special, and emergency dues and assessments imposed prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello -Roos and other Special Assessment District bonds and assessments that are now a lien. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello -Roos and other Special Assessment District bonds and assessments and HOA special assessments that are now a lien but not yet due. Property will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of Escrow, by Seller. TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month. 19. WITHHOLDING TAXES: Seller and Buyer agree to execute any instrument, affidavit, statement or instruction reasonably necessary to comply with federal (FIRPTA) and California withholding Law, if required (C.A.R. Forms AS and AB). 20. MULTIPLE LISTING SERVICE ("MLS"): Brokers are authorized to report to the MLS a pending sale and, upon Close Of Escrow, the terms of this transaction to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS. 21. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal, state and local anti -discrimination Laws. 22. ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non -prevailing Buyer or Seller, except as provided in paragraph 17A. 23. SELECTION OF SERVICE PROVIDERS: If Brokers refer Buyer or Seller to persons, vendors, or service or product providers ("Providers"), Brokers do not guarantee the performance of any Providers. Buyer and Seller may select ANY Providers of their own choosing. 24. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the parties are incorporated in this Agreement. Its terms are intended by the parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed, except in writing Signed by Buyer and Seller. 25. OTHER TERMS AND CONDITIONS, including attached supplements: A. 0 Buyer's Inspection Advisory (C.A.R. Form BIA) B. ❑ Purchase Agreement Addendum (C.A.R. Form PAA paragraph numbers: ) C. This nroaerty will have a Unit Reaulatory Agreement that Buver must execute and will be recorded against subiect nronerty. Buyer will sign the Buver's Worksheet and Low -Income Affidavit attached. 26. DEFINITIONS: As used in this Agreement: A. "Acceptance" means the time the offer or final counter offer is accepted in writing by a party and is delivered to and personally received by the other party or that party's authorized agent in accordance with the terms of this offer or a final counter offer. B. "Agreement" means the terms and conditions of this accepted California Residential Purchase Agreement and any accepted counter offers and addenda. C. "C.A.R. Form" means the specific form referenced or another comparable form agreed to by the parties. D. "Close Of Escrow" means the date the grant deed, or other evidence of transfer of title, is recorded. If the scheduled close of escrow falls on a Saturday, Sunday or legal holiday, then close of escrow shall be the next business day after the scheduled close of escrow date. E. "Copy" means copy by any means including photocopy, NCR, facsimile and electronic. F. "Days" means calendar days, unless otherwise required by Law. G. "Days After" means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified event occurs, and ending at 11:59PM on the final day. H. "Days Prior" means the specified number of calendar days before the occurrence of the event specified, not counting the calendar date on which the specified event is scheduled to occur. I. "Electronic Copy" or "Electronic Signature" means, as applicable, an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other. J. "Law" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency. K. "Notice to Buyer to Perform" means a document (C.A.R. Form NBP), which shall be in writing and Signed by Seller and shall give Buyer at least 24 hours (or as otherwise specified in paragraph 14C(4)) to remove a contingency or perform as applicable. L. "Repairs" means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Property provided for under this Agreement. M. "Signed" means either a handwritten or electronic signature on an original document, Copy or any counterpart. N. Singular and Plural terms each include the other, when appropriate. Buyer's Initials ( ) ( ) ) ( ) Copyright® 1991-2002, CALIFORNIA ASSOCIATION OF REALTORSO, INC. Seller's Initials ( RPA-CA REVISED 10102 (PAGE 6 OF 8) Reviewed by Date EOUAL ; H,r�r CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 6 OF 8) T6641484.ZFX Property Address: -43-915 Rock Rose. Palm Desert . CA 92211 Date:Auaust 6, 2004 27. AGENCY: A. DISCLOSURE: Buyer and Seller each acknowledge prior receipt of C.A.R. Form AD "Disclosure Regarding Real Estate Agency Relationships." B. POTENTIALLY COMPETING BUYERS AND SELLERS: Buyer and Seller each acknowledge receipt of a disclosure of the possibility of multiple representation by the Broker representing that principal. This disclosure may be part of a listing agreement, buyer -broker agreement or separate document (C.A.R. Form DA). Buyer understands that Broker representing Buyer may also represent other potential buyers, who may consider, make offers on or ultimately acquire the Property. Seller understands that Broker representing Seller may also represent other sellers with competing properties of interest to this Buyer. C. CONFIRMATION: The following agency relationships are hereby confirmed for this transaction: Listing Agent Century 21 Osborne Realty (Print Firm Name) is the agent of (check one): ❑ the Seller exclusively; or ® both the Buyer and Seller. Selling Agent Century 21 Osborne Realty (Print Firm Name) (if not same as Listing Agent) is the agent of (check one): ❑ the Buyer exclusively; or ❑ the Seller exclusively; or ® both the Buyer and Seller. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. 28. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: 1, 2, 4, 12, 13B, 14E, 18, 19, 24, 25B and C, 26, 28, 29, 32A, 33 and paragraph D of the section titled Real Estate Brokers on page 8. If a Copy of the separate compensation agreement(s) provided for in paragraph 29 or 32A, or paragraph D of the section titled Real Estate Brokers on page 8 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s). The terms and conditions of this Agreement not set forth in the specified paragraphs are additional matters for the information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder's general provisions directly from Escrow Holder and will execute such provisions upon Escrow Holder's request. To the extent the general provisions are inconsistent or conflict with this Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. Buyer and Seller will execute additional instructions, documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow. B. A Copy of this Agreement shall be delivered to Escrow Holder within 3 business days after Acceptance (or ❑ ). Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. C. Brokers are a party to the escrow for the sole purpose of compensation pursuant to paragraphs 29, 32A and paragraph D of the section titled Real Estate Brokers on page 8. Buyer and Seller irrevocably assign to Brokers compensation specified in paragraphs 29 and 32A, respectively, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers. Escrow Holder shall immediately notify Brokers: (i) if Buyer's initial or any additional deposit is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or (ii) if Buyer and Seller instruct Escrow Holder to cancel escrow. D. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 2 business days after mutual execution of the amendment. 29. BROKER COMPENSATION FROM BUYER: If applicable, upon Close Of Escrow, Buyer agrees to pay compensation to Broker as specified in a separate written agreement between Buyer and Broker. 30. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. All paragraphs with spaces for initials by Buyer and Seller are incorporated in this Agreement only if initialed by all parties. If at least one but not all parties initial, a counter offer is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of Acceptance. Buyer has read and acknowledges receipt of a Copy of the offer and agrees to the above confirmation of agency relationships. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing. Buyer's Initials ( ) ( ) Seller's Initials ( ) ( ) Copyright 0 1991-2002, CALIFORNIA ASSOCIATION OF REALTORSO, INC. EQUAL RPA-CA REVISED 10/02 (PAGE 7 OF 8) I Reviewed by Date I OPPORTTUNIUNIITY OPPOTY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 7 OF 8) T6641484.ZFX Property Address: 43-915 Rock Rose, Palm Desert . CA 92,211 Date:A&Imist 6. 2004 31. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit shall be returned unless the offer is Signed by Seller and a Copy of the Signed offer is personally received by Buyer, or by , who is authorized to receive it by 5:00 PM on the third calendar day after this offer is signed by Buyer (or, if checked, ® by Within Seven days from Buvers Slaniture (date) , at ❑ AM ❑ PM). Date BUYER (Print Name) Date BUYER (Print Name) (Address) 32. BROKER COMPENSATION FROM SELLER: A. Upon Close Of Escrow, Seller agrees to pay compensation to Broker as specified in a separate written agreement between Seller and Broker. B. If escrow does not close, compensation is payable as specified in that separate written agreement. 33. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property, or has the authority to execute this Agreement. Seller accepts the above offer, agrees to sell the Property on the above terms and conditions, and agrees to the above confirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizes Broker to deliver a Signed Copy to Buyer. ❑ (If checked) SUBJECT TO ATTACHED COUNTER OFFER, DATED Date SELLER Date SELLER Palm Desert Redevelopment Aa P- H w (Print Name) (Print Name) 73-510 Fred Warina Drive, Palm Desert, CA 92260-2578 (Address) { I ) CONFIRMATION OF ACCEPTANCE: A Copy of Signed Acceptance was personally received by Buyer or Buyer's authorized (Initials) agent on (date) at [] AM PM. A binding Agreement is created when a Copy of Signed Acceptance is personally received by Buyer or Buyer's authorized agent whether or not confirmed in this document. Completion of this confirmation Is not legally required in order to create a binding Agreement; it is solely intended to evidence the date that Confirmation of Acceptance has occurred. REAL ESTATE BROKERS: A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated in paragraph 27. C. If specified in paragraph 2A, Agent who submitted the offer for Buyer acknowledges receipt of deposit. D. COOPERATING BROKER COMPENSATION: Listing Broker agrees to pay Cooperating Broker (Selling Firm) and Cooperating Broker agrees to accept, out of Listing Broker's proceeds in escrow: (i) the amount specked in the MLS, provided Cooperating Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS; or (ii) (if checked) the amount specified in a separate written agreement (C.A.R. Form CBC) between Listing Broker and Cooperating Broker. Real Estate Broker (Selling Firm) Century 21 Osborne Realty By John Osborne Date Address 41 Orauidia Ct City Palm Desert State CA Zip 92260 Telephone (760) 346-2423 Fax (760) 346-2423 E-mail iohn. osborne@centurv21. com Real Estate Broker (Listing Firm) Century 21 Osborne Realty By John Osborne Date Address 41 Orauidia Ct City Palm Desert State CA Zip 92260 Telephone f760) 346-2423 Fax (760) 346-2423 E-mail iohn. osborne0centurv2l. com ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement, (if checked,[] a deposit in the amount of $ ), counter offer numbers and and agrees to act as Escrow Holder subject to paragraph 28 of this Agreement, any supplemental escrow instructions and the terms of Escrow Holder's general provisions. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is Escrow Holder Escrow # By Jacauie Romero Date Address 41-995 Boardwalk, Suite G-2, Palm Desert CA 92211-5110 Phone/Fax/E-mail Escrow Holder is licensed by the California Department of 0 Corporations, ❑ Insurance, ❑ Real Estate. License # REJECTION OF OFFER: No counter offer is being made. This offer was reviewed and rejected by Seller on (Seller's Initials) (Date) I THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS& (CA.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is available for use by the entire real estate industry. It is not intended to identify the user as a REALTOR& REALTORS is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORSO who subscribe to Its Code of Ethics. Published by the California Association of REALTORSO EQUAL HOUSING The System V ror Success' ` Reviewed by Date , OPPORTUNITY RPA-CA REVISED 10)02 (PAGE 8 OF 8) CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 8 OF 8) T6641484.ZFX L'� CALIFORNIA 41k ASSOCIATION BUYER'S INSPECTION ADVISORY '0% 7p OF REALTORSt (C.A.R. Form BIA, Revised 10102) Property Address: 43-915 Rock Rose, Palm Desert , CA 92211 ("Property"). A. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. For this reason, you should conduct thorough investigations of the Property personally and with professionals who should provide written reports of their investigations. A general physical inspection typically does not cover all aspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommend further investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you should contact qualified experts to conduct such additional investigations. B. BUYER RIGHTS AND DUTIES: You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your diligent attention and observation. The purchase agreement gives you the right to investigate the Property. If you exercise this right, and you should, you must do so in accordance with the terms of that agreement. This is the best way for you to protect yourself. It is extremely important for you to read all written reports provided by professionals and to discuss the results of inspections with the professional who conducted the inspection. You have the right to request that Seller make repairs, corrections or take other action based upon items discovered in your investigations or disclosed by Seller. If Seller is unwilling or unable to satisfy your requests, or you do not want to purchase the Property in its disclosed and discovered condition, you have the right to cancel the agreement if you act within specific time periods. If you do not cancel the agreement in a timely and proper manner, you may be in breach of contract. C. SELLER RIGHTS AND DUTIES: Seller is required to disclose to you material facts known to him/her that affect the value or desirability of the Property. However, Seller may not be aware of some Property defects or conditions. Seller does not have an obligation to inspect the Property for your benefit nor is Seller obligated to repair, correct or otherwise cure known defects that are disclosed to you or previously unknown defects that are discovered by you or your inspectors during escrow. The purchase agreement obligates Seller to make the Property available to you for investigations. D. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as soil stability, geologic or environmental conditions, hazardous or illegal controlled substances, structural conditions of the foundation or other improvements, or the condition of the roof, plumbing, heating, air conditioning, electrical, sewer, septic, waste disposal, or other system. The only way to accurately determine the condition of the Property is through an inspection by an appropriate professional selected by you. If Broker gives you referrals to such professionals, Broker does not guarantee their performance. You may select any professional of your choosing. In sales involving residential dwellings with no more than four units, Brokers have a duty to make a diligent visual inspection of the accessible areas of the Property and to disclose the results of that inspection. However, as some Property defects or conditions may not be discoverable from a visual inspection, it is possible Brokers are not aware of them. If you have entered into a written agreement with a Broker, the specific terms of that agreement will determine the nature and extent of that Broker's duty to you. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE i4DVICE OF BROKERS. E. YOU ARE ADVISED TO CONDUCT INVESTIGATIONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING: 1. GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND COMPONENTS: Foundation, roof, plumbing, heating, air conditioning, electrical, mechanical, security, pool/spa, other structural and non-structural systems and components, fixtures, built-in appliances, any personal property included in the sale, and energy efficiency of the Property. (Structural engineers are best suited to determine possible design or construction defects, and whether improvements are structurally sound.) 2. SQUARE FOOTAGE, AGE, BOUNDARIES: Square footage, room dimensions, lot size, age of improvements and boundaries. Any numerical statements regarding these items are APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other natural or constructed barriers or markers do not necessarily identify true Property boundaries. (Professionals such as appraisers, architects, surveyors and civil engineers are best suited to determine square footage, dimensions and boundaries of the Property.) 3. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and organisms and other infestation or infection. Inspection reports covering these items can be separated into two sections: Section 1 identifies areas where infestation or infection is evident. Section 2 identifies areas where there are conditions likely to lead to infestation or infection. A registered structural pest control company is best suited to perform these inspections. The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this form, or any portion thereof, by photocopy Buyer's Initials ( ) ( ) machine or any other means, including facsimile or computerized formats. Seller's Initials ( ) ( ) Copyright © 1991-2002, CALIFORNIA ASSOCIATION OF REALTORS®, 121 INC. ALL RIGHTS RESERVED. I Reviewed by Date I CGUAL NOW OPPORTUNITY BIA REVISED 10/02 (PAGE 1 OF 2) BUYER'S INSPECTION ADVISORY (BIA PAGE 1 OF 2) IAgent: John Osborne Phone: (760)921-2121 Fax: (760)922-4387 Prepared using WINForms® software Broker: Century 21 Osborne Realty 41 Orquidia Court, Palm Desert CA 92260 Property Address: 43-915 Rock Rose, Palm Desert , CA 92211 Date: August 6. 2004 4. SOIL STABILITY: Existence of fill or compacted soil, expansive or contracting soil, susceptibility to slippage, settling or movement, and the adequacy of drainage. (Geotechnical engineers are best suited to determine such conditions, causes and remedies.) 5. ROOF: Present condition, age, leaks, and remaining useful life. (Roofing contractors are best suited to determine these conditions.) 6. POOLISPA: Cracks, leaks or operational problems. (Pool contractors are best suited to determine these conditions.) 7. WASTE DISPOSAL: Type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer, and applicable fees. 8. WATER AND UTILITES; WELL SYSTEMS AND COMPONENTS: Water and utility availability, use restrictions and costs. Water quality, adequacy, condition, and performance of well systems and components. 9. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead -based paint and other lead contamination, radon, methane, other gases, fuel oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions (including mold (airborne, toxic or otherwise), fungus or similar contaminants). (For more information on these items, you may consult an appropriate professional or read the booklets "Environmental Hazards: A Guide for Homeowners, Buyers, Landlords and Tenants," "Protect Your Family From Lead in Your Home" or both.) 10. EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood. (A Geologist or Geotechnical Engineer is best suited to provide information on these conditions.) 11. FIRE, HAZARD AND OTHER INSURANCE: The availability and cost of necessary or desired insurance may vary. The location of the Property in a seismic, flood or fire hazard zone, and other conditions, such as the age of the Property and the claims history of the Property and Buyer, may affect the availability and need for certain types of insurance. Buyer should explore insurance options early as this information may affect other decisions, including the removal of loan and inspection contingencies. (An insurance agent is best suited to provide information on these conditions.) 12. BUILDING PERMITS, ZONING AND GOVERNMENTAL REQUIREMENTS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or future use of the Property, its development or size. (Such information is available from appropriate governmental agencies and private information providers. Brokers are not qualified to review or interpret any such information.) 13. RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants; and the right of a landlord to terminate a tenancy. Deadbolt or other locks and security systems for doors and windows, including window bars, should be examined to determine whether they satisfy legal requirements. (Government agencies can provide information about these restrictions and other requirements.) 14. SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self -latching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various fire safety and other measures concerning other features of the Property. Compliance requirements differ from city to city and county to county. Unless specifically agreed, the Property may not be in compliance with these requirements. (Local government agencies can provide information about these restrictions and other requirements.) 15. NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FACTORS: Neighborhood or area conditions, including schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed -wired, wireless internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer. Buyer and Seller acknowledge and agree that Broker: (i) Does not decide what price Buyer should pay or Seller should accept; (ii) Does not guarantee the condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (Iv) Shall not be responsible for identifying defects that are not known to Broker and (a) are not visually observable in reasonably accessible areas of the Property; (b) are in common areas; or (c) are off the site of the Property; (v) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vi) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (vii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple Listing Service, advertisements, flyers or other promotional material; (viii) Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (ix) Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. By signing below, Buyer and Seller each acknowledge that they have read, understand, accept and have received a Copy of this Advisory. Buyer is encouraged to read it carefully. Buyer Signature Date Buyer Signature Date Seller Signature Date Seller Signature Date Palm Desert Redevelopment Ag THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is available for use by the entire real estate industry. It is not intended to identify the user as a REALTORS. REALTORS is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORSO who subscribe to its Code of Ethics. Ak ffN . , Published by the �j California Association of REALTORS® I Reviewed by Date I EQUAL HOUSING f2l, The System for SuCess" OPPORTUNITY BIA REVISED 10/02 (PAGE 2 OF 2) BUYER'S INSPECTION ADVISORY (BIA PAGE 2 OF 2) N&N C A L I F O RN I A REAL ESTATE TRANSFER DISCLOSURE STATEMENT ASSOCIATION _.� OF REALTORS� (CALIFORNIA CIVIL CODE §1102, ET SEQ) (C.A.R. Form TDS, Revised 10/03) THIS DISCLOSURE STATEMENT CONCERNS THE REAL PROPERTY SITUATED IN THE CITY OF Palm Desert , COUNTY OF Riverside , STATE OF CALIFORNIA, DESCRIBED AS 43-915 Rock Rose, Palm Desert, CA 92211 THIS STATEMENT IS A DISCLOSURE OF THE CONDITION_ OF THE ABOVE DESCRIBED PROPERTY IN COMPLIANCE WITH SECTION'1102 OF THE CIVIL�COD AS Op (date) Aucrust 6, 2004 . IT IS NOT A WARRANTY OF ANY FIND BY THE SELLERS) OR ANY AGENTS) REPRESENTING ANY PRINCIPAL(S) IN THIS TRANSACTION, AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PRINCIPALS) MAY WISH TO OBTAIN. 1. COORDINATION WITH OTHER DISCLOSURE FORMS This Real Estate Transfer Disclosure Statement is made pursuant to Section 1102 of the Civil Code. Other statutes require disclosures, depending upon the details of the particular real estate transaction (for example: special study zone and purchase -money liens on residential property). Substituted Disclosures: The following disclosures and other disclosures required by law, including the Natural Hazard Disclosure Report/Statement that may include airport annoyances, earthquake, fire, flood, or special assessment information, have or will be made in connection with this real estate transfer, and are intended to satisfy the disclosure obligations on this form, where the subject matter is the same: ❑ Inspection reports completed pursuant to the contract of sale or receipt for deposit. ❑ Additional inspection reports or disclosures: II. SELLER'S INFORMATION The Seller discloses the following information with the knowledge that even though this is not a warranty, prospective Buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any agent(s) representing any principal(s) in this transaction to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER(S) AND ARE NOT THE REPRESENTATIONS OF THE AGENT(S), IF ANY. THIS INFORMATION IS A'DISCLOSURE _ AND IS NOT INTENDED TO BE PART' �6F ANY CONTRACT BETWEEN THE BUYER AND SELLER. Seller ❑ is 0 is not occupying the property. A. The subject property has the items checked below (read across) ❑ Range ❑ Oven ❑ Microwave ❑ Dishwasher ❑ Trash Compactor ❑ Garbage Disposal ❑ Washer/Dryer Hookups ❑ Rain Gutters ❑ Burglar Alarms ❑ Smoke Detector(s) ❑ Fire Alarm ❑ T.V. Antenna ❑ Satellite Dish ❑ Intercom ❑ Central Heating ❑ Central Air Conditioning ❑ Evaporator Cooler(s) ❑ Wall/Window Air Conditioning ❑ Sprinklers ❑ Public Sewer System ❑ Septic Tank ❑ Sump Pump ❑ Water Softener ❑ Patio/Decking ❑ Built-in Barbecue ❑ Gazebo ❑ Sauna ❑ Hot Tub ❑ Locking Safety Cover" ❑ Pool ❑ Child Resistant Barrier" ❑ Spa ❑ Locking Safety Cover' ❑ Security Gate(s) ❑ Automatic Garage Door Opener(s)" ❑ Number Remote Controls Garage: ❑ Attached ❑ Not Attached ❑ Carport Pool]Spa Heater: ❑ Gas ❑ Solar ❑ Electric Water Heater. ❑ Gas ❑ Water Heater Anchored, Braced, or Strapped' ❑ Private Utility or Water Supply: ❑ City ❑ Well Other Gas Supply: ❑ Utility ❑ Bottled ❑ Window Screens ❑ Window Security Bars ❑ Quick Release Mechanism on Bedroom Windows" Exhaust Fan(s) in 220 Volt Wiring in Fireplace(s) in ❑ Gas Starter ❑ Roof(s): Type: Age: (approx.) ❑ Other: Are there, to the best of your (Seller's) knowledge, any of the above that are not in operating condition? ❑ Yes ❑ No. If yes, then describe. (Attach additional sheets if necessary): ("see footnote on page 2) The copyright laws of the United States (Title 17 U.S. Code) forbid the Buyer's Initials ( ) ( ) unauthorized reproduction of this form, or any portion thereof, by photocopy S eller's Initials ( ) ( ) machine or any other means, including facsimile or computerized formats. Copyright d 1991-2003, CALIFORNIA ASSOCIATION OF REALTORSS, Reviewed by Date INC. ALL RIGHTS RESERVED. 12, TDS REVISED 10103 (PAGE 1 OF 3) ur°r aSINC TY REAL ESTATE TRANSFER DISCLOSURE STATEMENT (TDS PAGE 1 OF 3) Agent: John Osborne Phone: (760)921-2121 Fax: (760)922-4387 Prepared using WINForms® software Broker: Century 21 Osborne Realty 41 Orquidia Court, Palm Desert CA 92260 Property Address: 43-915 Rock Rose. Pal— Desert. cn 92211 Date: August 6. 2004 B. Are you (Seller) aware of any significant defects/malfunctions in any of the following? ❑ Yes ❑ No. If yes, check appropriate space(s) below. ❑ Interior Walls ❑ Ceilings ❑ Floors ❑ Exterior Walls ❑ Insulation ❑ Roof(s) ❑ Windows ❑ Doors ❑ Foundation ❑ Slab(s) ❑ Driveways ❑ Sidewalks ❑ Walls/Fences ❑ Electrical Systems ❑ Plumbing/Sewers/Septics ❑ Other Structural Components (Describe: If any of the above is checked, explain. (Attach additional sheets if necessary): *This garage door opener or child resistant pool barrier may not be in compliance with the safety standards relating to automatic reversing devices as set forth in Chapter 12.5 (commencing with Section 19890) of Part 3 of Division 13 of, or with the pool safety standards of Article 2.5 (commencing with Section 115920) of Chapter 5 of Part 10 of Division 104 of, the Health and Safety Code. The water heater may not be anchored, braced, or strapped in accordance with Section 19211 of the Health and Safety Code. Window security bars may not have quick release mechanisms in compliance with the 1995 Edition of the California Building Standards Code. C. Are you (Seller) aware of any the following: 1. Substances, materials, or products which may be an environmental hazard such as, but not limited to, asbestos, formaldehyde, radon gas, lead -based paint, mold, fuel or chemical storage tanks, and contaminated soil or water on the subject property.......................................................... ❑ Yes ❑ No 2. Features of the property shared in common with adjoining landowners, such as walls, fences, and driveways, whose use or responsibility for maintenance may have an effect on the subject property ................. ❑ Yes ❑ No 3. Any encroachments, easements or similar matters that may affect your interest in the subject property ......... ❑ Yes ❑ No 4. Room additions, structural modifications, or other alterations or repairs made without necessary permits....... ❑ Yes ❑ No S. Room additions, structural modifications, or other alterations or repairs not in compliance with building codes.... ❑ Yes ❑ No S. Fill (compacted or otherwise) on the property or any portion thereof .................................... ❑ Yes ❑ No 7. Any settling from any cause, or slippage, sliding. or other soil problems ................................. ❑ Yes ❑ No 8. Flooding, drainage or grading problems......................................................... ❑ Yes ❑ No 1 9. Major damage to the property or any of the structures from fire, earthquake, floods, or landslides ............. ❑ Yes ❑ No 10. Any zoning violations, nonconforming uses, violations of "setback" requirements ......................... ❑ Yes ❑ No 11. Neighborhood noise problems or other nuisances ........................................... ❑ Yes ❑ No 12. CC&R's or other deed restrictions or obligations ............................................ ❑ Yes ❑ No 13. Homeowners' Association which has any authority over the subject property ............................ ❑ Yes ❑ No 14. Any "common area" (facilities such as pools, tennis courts, walkways, or other areas co -owned in undivided interest with others) ............................. ................................... ❑ Yes ❑ No 15. Any notices of abatement or citations against the property ........................................... ❑ Yes ❑ No 16. Any lawsuits by or against the seller threatening to or affecting this real property, including any lawsuits alleging a defect or deficiency in this real property or "common areas" (facilities such as pools, tennis courts, walkways, or other areas, co -owned in undivided interest with others) ............................................ ❑ Yes ❑ No If the answer to any of these is yes, explain. (Attach additional sheets if necessary): Seller certifies that the information herein is true and correct to the best of the Seller's knowledge as of the date signed by the Seller. 'Seller Date Palm Desert Redevelopment Ag Seller Date Buyers Initials ( ) ( ) W Copyright 01991-2003, CALIFORNIA ASSOCIATION OF REALTORSO, INC. I Reviewed by Date EOUAE NWM TDS REVISED 10/03 (PAGE 2 OF 3) OPPORTUNITY REAL ESTATE TRANSFER DISCLOSURE STATEMENT (TDS PAGE 2 OF 3) Property Address: 43-915 Rock Rose, Palm Desert, CA 92211 Date: August 6, 2004 III. AGENT'S INSPECTION DISCLOSURE (To be completed only if the Seller is represented by an agent in this transaction.) THE UNDERSIGNED, BASED ON THE ABOVE INQUIRY OF THE SELLER(S) AS TO THE CONDITION OF THE PROPERTY AND BASED ON A REASONABLY COMPETENT AND DILIGENT VISUAL INSPECTION OF THE ACCESSIBLE AREAS OF THE PROPERTY IN CONJUNCTION WITH THAT INQUIRY, STATES THE FOLLOWING: ❑ Agent notes no items for disclosure. 9 Agent notes the following items: Agent (Broker Representing Seller) Century 21 Osborne Realty By Date (Please Print) (Associate Licensee or Broker Signature) John Osborne IV. AGENT'S INSPECTION DISCLOSURE (To be completed only if the agent who has obtained the offer is other than the agent above.) THE UNDERSIGNED, BASED ON A REASONABLY COMPETENT AND DILIGENT VISUAL INSPECTION OF THE ACCESSIBLE AREAS OF THE PROPERTY, STATES THE FOLLOWING: ❑ Agent notes no items for disclosure. 0 Agent notes the following items: same as Above Agent (Broker Obtaining the Offer) century 21 Osborne Realty By Date (Please Print) (Associate Licensee or Broker Signature) John Osborne V. BUYER(S) AND SELLER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN BUYER AND SELLER(S) WITH RESPECT TO ANY ADVICE/INSPECTIONS/DEFECTS. �f I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS STATEMENT. Seller Date Buyer Date Palm Desert Redevelopment Ag Elvis Dzaf1c Seller Date Buyer Date Alma Dzafic Agent (Broker Representing Seller) Century 21 Osborne Realty By Date (Please Print) (Associate Licensee or Broker Signature) John Osborne Agent (Broker Obtaining the Offer) century 21 Osborne Realty By Date (Please Print) (Associate Licensee or Broker Signature) John Osborne SECTION 1102.3 OF THE CIVIL CODE PROVIDES A BUYER WITH THE RIGHT TO RESCIND A PURCHASE CONTRACT FOR AT LEAST THREE DAYS AFTER THE DELIVERY OF THIS DISCLOSURE IF DELIVERY OCCURS AFTER THE SIGNING OF AN OFFER TO PURCHASE: IF YOU WISH TO RESCIND THE CONTRACT, YOU MUST ACT WITHIN THE PRESCRIBED PERIOD. A REAL ESTATE BROKER 1S QUALIFIED TO ADVISE ON REAL ESTATE. IF YOU DESIRE LEGAL ADVICE, CONSULT YOUR ATTORNEY. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORSO IC.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is available for use by the entire real estate Industry itis not intended to identify the user as a REALTOR& REALTOR& is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORSO who subscribe to its Code of Ethics. Ak D fil ��, Published by the f2l Tn�Ij o4 California Association of REALTORSO I Reviewed b Date 1 WlHUI1m Y y OPPORTUNITY TDS REVISED 10/03 (PAGE 3 OF 3) REAL ESTATE TRANSFER DISCLOSURE STATEMENT (TDS PAGE 3 OF 3) T4415598.ZFX A .41%�, C A L I F O R N I A DISCLOSURE REGARDING ASSOCIATION REAL ESTATE AGENCY RELATIONSHIPS _ OF REALTORS@ (As required by the Civil Code) (C.A.R. Form AD-1 1, Revised 10/01) When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction. SELLER'S AGENT A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of that agent has the following affirmative obligations: To the Seller: A Fiduciary duty of utmost care, integrity, honesty, and loyalty in dealing with the Seller. To the Buyer and the Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. BUYER'S AGENT A selling agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seiler. An agent acting only for a Buyer has the following affirmative obligations: To the Buyer: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer. To the Buyer and the Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. AGENT REPRESENTING BOTH SELLER AND BUYER A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer. (a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Seller or the Buyer. (b) Other duties to the Seller and the Buyer as stated above in their respective sections. In representing both Seller and Buyer, the agent may not, without the express permission of the respective party, disclose to the other party that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered. The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE. ❑ BUYER ®SELLER Palm Desert Redevelopment Age Date Time ❑ AM ❑ PM ❑ BUYER ❑ SELLER Date Time ❑ AM ❑ PM AGENT Century 21 Osborne Realty By Date (Please Print) (Associate -Licensee or Broker Signature) THIS FORM SHALL BE PROVIDED AND ACKNOWLEDGED AS FOLLOWS (Civil Code §2079.14): • When the listing brokerage company also represents the Buyer, the Listing Agent shall give one AD-11 form to the Seller and one to the Buyer. • When Buyer and Seller are represented by different brokerage companies, then the Listing Agent shall give one AD-11 form to the Seller and the Buyer's Agent shall give one AD-11 form to the Buyer and one AD-11 form to the Seller. SEE REVERSE SIDE FOR FURTHER INFORMATION The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. Copyright© 1991-2001, CALIFORNIA ASSOCIATION OF REALTORSO, INC. ALL RIGHTS RESERVED. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORSO (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is available for use by the entire real estate industry. It is not intended to Identify the user as a REALTOR& REALTOR@ is a registered collective membership mark vhich nay be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. r Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. Reviewed by " a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORSO Broker or Designee Datef2l c 525 South Virgil Avenue, Los Angeles, California 90020 roue xousdc AD-11 REVISED 10/01 (PAGE 1 OF 2) DPPDPTUNITY DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS (AD-11 PAGE 1 OF 1) Century 21 Osbome Realty 41 Orquidia Court, Palm Desert CA 92260 Phone: (760)921-2121 Fax: (760)9224387 John Osborne T4415598.ZFX CHAPTER 3 OF TITLE 6 OF PART 4 OF DIVISION 3 OF THE CIVIL CODE 2079.13 As used in Sections 2079.14 to 2079.24, inclusive, the following terms have the following meanings: (a) "Agent" means a person acting under provisions of title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. (b) "Associate licensee" means a person who is licensed as a real broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the broker's agent in connection with acts requiring a real estate license and to function under the broker's supervision in the capacity of an associate licensee. The agent in the real properly transaction bears responsibility for his or her associate licensees who perform as agents of the agent. When an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions. (c) "Buyer" means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. "Buyer" includes vendee or lessee. (d) "Dual agent" means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction. (e) "Listing agreement' means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer. (f) "Listing agent" means a person who has obtained a listing of real property to act as an agent for compensation. (g) "Listing price" is the amount expressed in dollars specked in the listing for which the seller is willing to sell the real property through the listing agent. ( ) "Offering price" is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (i) "Offer to purchase" means a written contract executed by a buyer acting through a selling agent which becomes the contract for the sale of the real property upon acceptance by the seller. 0) "Real property" means any estate specified by subdivision (1) or (2) of Section 761 in property which constitutes or is improved with one to four dwelling units, any leasehold in this type of property exceeding one year's duration, and mobilehomes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code. (k) "Real property transaction" means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase. (1) "Sell," "sale," or "sold" refers to a transaction for the transfer of real property from the seller to the buyer, and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (m) "Seller" means the transferor in a real property transaction, and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. "Seller" includes both a vendor and a lessor. (n) "Selling agent" means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, and who sells or finds and obtains a buyer for the real property, or an agent who locates property for a buyer or who finds a buyer for a property for which no listing exists and presents an offer to purchase to the seller. (o) "Subagent" means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However, "subagent" does not include an associate licensee who is acting under the supervision of an agent in a real property transaction. 2079.14 Listing agents and selling agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except as provided in subdivision (c), shall obtain a signed acknowledgement of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows: (a) The listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, unless the selling agent previously provided the seller with a copy of the disclosure form pursuant to subdivision (a). (c) Where the selling agent does not deal on a face-to-face basis with the seller, the disclosure form prepared by the selling agent may be furnished to the seller (and acknowledgement of receipt obtained for the selling agent from the seller) by the listing agent, or the selling agent may deliver the disclosure form by certified mail addressed to the seller at his or her last known address, in which case no signed acknowledgement of receipt is required. (d) The selling agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer's offer to purchase, except that if the offer to purchase is not prepared by the selling agent, the selling agent shall present the disclosure form to the buyer not later than the next business day after the selling agent receives the offer to purchase from the buyer. 2079.15 In any circumstance in which the seller or buyer refuses to sign an acknowledgement of receipt pursuant to Section 2079.14, the agent, or an associate licensee acting for an agent, shall set forth, sign, and date a written declaration of the facts of the refusal. 2079.17 (a) As soon as practicable, the selling agent shall disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the buyer's agent, exclusively as the seller's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the selling agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the listing agent shall disclose to the seller whether the listing agent is acting in the real property transaction exclusively as the setter's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the listing agent prior to or coincident with the execution of that contract by the seller. (c) The corIfirmation required by ubdivisions (a) a/nd b) shall be in the following form. C i, is the agent of (check one): ❑ the seller exclusively; or both the buyer and seller. (Name of Listing 9gent) is the agent of (check one): ❑ the buyer exclusively; or ❑ the seller exclusively; or (Name of Selling Agent if not the same as the Listing Agent) ❑ both the buyer and seller. (d) The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14, 2079.18 No selling agent in a real property transaction may act as an agent for the buyer only, when the selling agent is also acting as the listing agent in the transaction. 2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship. 2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with. 2079.21 A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer. This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a listing agent from also being a selling agent, and the combination of these functions in one agent does not, of itself, make that agent a dual agent. 2079.23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship. 2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure FORM AD-11 Page 2 of 2 T4415598 ZFX